Glossary of Municipal Securities Terms

MARK-DOWN

A form of remuneration received by a municipal securities dealer when purchasing securities as principal from a customer. Mark-down generally is considered to be the differential between the prevailing market price of the security at the time the municipal securities dealer purchases the security from the customer and the lower price paid to the customer by the municipal securities dealer. See: SPREAD; TWO-SIDED MARKET. Compare: COMMISSION; MARK-UP.

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